Merkado Barkada
November 11, 2024 | 8:57am
Robinsons Land [RLC 14.84 ?1.1%; 31% avgVol] [link] posted a Q3 net income of P3.49 billion, up 2.5% y/y from its Q3/23 net income of P3.41 billion. RLC’s 9M net income was P11.60 billion (up 17.6% y/y). However, in terms of the results which are attributable to RLC’s shareholders, RLC’s Q3 profit was down 9.7% to P2.76 billion and its 9M profit was up 13.2% to P10.01 billion. The company attributed its 9M growth to “strong performance across its Investment Properties” where revenues were up 14% to P24 billion. RLC’s “development portfolio” recognized P7.4 billion in revenue for the same period. 9M revenue was up for several of RLC’s segments, like Robinsons Malls (+12%), Robinsons Offices (+7%), Robinsons Hotels and Resorts (+33%), and Robinsons Logistics and Industrial Facilities (+36%).
MB BOTTOM-LINE: Aside from the outsized performance of RLC’s hotels and logistics units, this is a good time to talk about the difference between “net income after tax” (NI) and “net income attributable to parent equity holder” (NIAT). Depending on which metric you use, RLC’s Q3 was either up 2.5% or down 9.7%. At a high level, NI measures the profitability of the business and all of its subsidiaries. It adds up all the revenues, subtracts all the expenses and taxes, and whatever is left over is “net income”. This is a decent measure (just one of many) of the profitability of the underlying businesses, but it doesn’t tell the whole financial story, because RLC does not own 100% of all the businesses that were added together to reach that number. The NIAT number that is reported is what is left over after all of the net income associated with minority shareholders across all of the company’s subsidiaries are subtracted from the total, and this NIAT number is what is most representative of the profit available to RLC and its shareholders. If you’re interested in learning about the topline health of the businesses, NI is a good place to start, but if you’re trying to uncover trends in profitability to estimate dividends, NIAT is the number for you. This is just a high-level way to think of the difference, but it’s a good jumping-off point for additional research. There’s a ton of nuance in how both figures are calculated, but that’s the mental model that I use to make sense of the data.
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